Honda Malaysia opens No. 2 Line for small and hybrid cars at Pegoh plant to double production capacity

Honda Malaysia has officiated its No. 2 Line at its Pegoh plant in Melaka. Occupying a built-up area of 49,190 square metres, the new line doubles the plant’s total production capacity from the current 50,000 to 100,000 units per year, and from 200 to 400 units daily.

The No. 2 Line, into which a total of RM382 million was invested, began production in November 2013. Like Honda’s Yorii plant at the Saitama Factory in Japan, the line specialises in “small models” and their hybrid variants. This leaves production of the current City, Civic, CR-V and Accord to the No. 1 Line, which has been operational since January 2003.

In line with NAP 2014‘s known aim to make Malaysia an Energy-Efficient Vehicle production hub for the region, exports out of the Pegoh plant could also happen in the future. The addition of the No. 2 Line brings the total area of the Pegoh plant to around 96,000 square metres, and 700 new associates are expected to come on board.

The No. 2 Line introduces a number of new technologies from the Yorii plant, including an automated Smart Welding Machine (the first outside of Japan), an advanced paint facility incorporating wall-mounted Spray Robots, Under Body Coating and continuous body dipping, and an enhanced Multi Driving Tester (MDT).

The MDT, situated at the Vehicle Quality section near the end of the line, involves four-wheel rollers on which a vehicle’s brakes and speedometer are put to the test. It can even check a hybrid’s IMA system and battery condition. Moreover, the MDT’s rollers are regenerative – on deceleration, they generate electricity to be fed back to the plant.

Healthier and more eco-friendly waterborne paints are set to replace the current solvent-based paints for vehicle bodies in the future, while high-efficiency equipment, lean processes, the use of natural lighting and solar energy contribute to help Honda realise its global environmental target of a 30% cut in CO2 emissions by 2020.

Honda Malaysia has enhanced its overall operations over the past few years with a new parts warehouse, a 2.15-km test track facility, an R&D facility and a new pre-delivery inspection centre. It also recently switched to rail transport for delivery of parts between Thailand and Malaysia.

“We have set our mid-term plan to make additional investments of RM1 billion in three years starting in 2012, to the manufacturing and sales network,” said Honda Malaysia CEO Yoichiro Ueno. “This investment is crucial in strengthening our operations in order to meet our mid-term goal of achieving 100,000 units sales by 2016.”

According to Ueno, Honda Malaysia targets to sell 76,000 cars in 2014 – about 40% more than it did last year. It also aims to increase parts localisation from 30-40% previously to over 70% in the near future, and the number of dealers in Malaysia from the current 70 to 90 by 2015. As of December 2013, the company has cumulatively sold more than 22,000 hybrids in Malaysia.

A total of around 600,000 Honda vehicles were delivered to Asia and Oceania last year, revealed Asian Honda Motor CEO Hiroshi Kobayashi, who was also there at the ceremony. This is targeted to double to 1.2 million units in those regions by 2016.

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

It is obvious that Honda Malaysia is going to be one of the major player in the EEV arena, in anticipation of the benefits offered in the soon-revealed NAP 2014. Not surprising, given that they have probably been in close contact with MAI in collaboration with DRB-HICOM, and based on the expected investment figure from Japan. Definitely Honda Malaysia had been one of the main influence on the NAP. I just hope that to the Malaysian motorists, this would translate to cars which are of better quality, choice, cleaner and most importantly more affordable.

Indeed, it is nice to see Honda setting a foot here and with a collaboration with DRB HICOM after Kah Motor. You can’t go wrong than partnering the country’s biggest industrial asset owner.

But what saddens me is the lack of quality from locally made Hondas since the ES Civic, which is practically the first Civic assembled by this joint venture. I can’t speak for the entire industry, but from my pool of friends, i get the sense they get LESS complaints from their Perodua than the Hondas.

When Proton launched the Inspira, the new Lancer was also sold alongside it.

This is not the case with the Perdana. Honda MY already launched the 9th gen Accord last year, before the new Perdana. The new Perdana is based on the older 8th gen Accord.

There is no need to worry about marketing conflicts because there aren’t any in the Perdana’s case. Also, Mitsubishi MY’s sales went down because they did NOT have a good B-segment volume seller like the Vios and City.

It will affect the resale value of same Accord model generation which is unfair and unnecessary loss to the Accord owner, given the fact that Spanco allowed to resell the rebadged govt Accordana to the govt officers or public auction it after contract maintenance period lapsed.

Honda basically shooting itself on the foot, just like Mitsubishi did.

Anyway among 60 million Japanese, not all of them are smart. Ada juga yang bodoh dan senang kena tipu.

Looks like Honda has standardized ESP in its lineup (except City 1.5S), but number of airbags should be standard at least 6, more is better… Active and passive safety should come together… And yes I hope Honda MY crush UMW as the 1st non-national, in passenger car context maybe, but really it is very hard indeed as Toyota also depends on ‘commercial’ vehicles like Hilux, Fortuner and Hiace which Honda does not have any product sold in the segment..

This is just the reward for allowing Govt to rebadge the Accord through Proton. With the potential new ruling, only malaysian assembled hybrids under 2000cc will still get the rebates whilst imported models will not. Hence making Honda hybrids the only one with a price advantage.

Insider trading is a crime for Bursa share trades under Finance Ministry rule. OK that’s maybe not applicable for automotive industry….no wonder some car firm can sniff early tips and set up hybrid car factory ahead of others…

look like honda will kill other market share especially toyota with their CKD price. and for sure other brand will reduce the price or increase their xtra features.
btw im waiting VW Golf CKD or Jetta CKD.

Excellent move by Honda.Hope they ckd the 3rd gen Jazz.Sure become best selling supermini in Malaysia.Overtake the Champion Myvi.Love their jazz and latest accord models:) New Nissan Note coming end of this year and maybe new jazz(unknown at this point of time),can finally sell my junk Myvi away!!! Later, Perodua sales will kaput:)LOL.

Wow guys, just found out that the Philippines import their Hondas from Thailand factory. And guess what, they get their latest honda civic top of the line at 1,165,000 pesos, at 1 ringgit = 13.65 pesos exchange rate, is about 86k in ringgit. What the hell? With all the import costs they still get their honda with such a savings compare to us. We are getting around 132k ringgit. What . . . . . . Check this out. I got my info of the price from this person from the Philippine reviewing his latest civic. http://onlineawesomeshow.wordpress.com/2013/06/21/awesome-drives-honda-civic-2-0-el-modulo/

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